This article has been translated from English to Gen Z Slang.

A passive order be like a chill trading move where the homies set their price diff from what the market vibin' to. 😎

You know it's passive when the traders are all like, "Yo, this currency pair better hit this level before I make my move." 🕶️

Passive orders pop when a trader throws down a price that's not matching the bid or ask price like a boss. 🚀

They set a fresh price, creating a new spot in the order book, waiting for the crowd to roll up and hit that level. 📈

But like, passive orders don't last forever. ⏳

If the magic don't happen within the deadline, that order bails and the trader's gotta start over. 🔄

The more off the price is from market rates, the more passive it's vibin'. 🤷‍♂️

Contrast that with aggressive orders, where peeps jump into the action ASAP. 😤

Passive orders just chill and wait for the price to slide their way. 💤

It's like the opposite of aggressive orders, which be hustling to catch up with the price. 🏃‍♂️💨

What is a passive order?

Passive orders can be your go-to move when trading stocks or other cool stuff. 💼

  • For buying, set that price below the ask price. 💸
  • For selling, you're gonna want to set it above the bid price.

Like, if EUR/USD's bid price is 1.1050, and askin' is 1.1052, you can flex with a passive order. 💪

Put down a buy order at 1.1049.

Since the asking price is 1.1050, this passive trade ain't happening right away. ⏰

The order's gonna fill when you cop that currency pair at 1.1049. 💵

You can always bounce by canceling the order before it goes down. 🚫

One downside to this chill strategy is that it might not happen at the fave price. 😬 But traders using passive orders could be playing the waiting game for an aggressive move to make their day. 🎯

What’s the difference between a passive order and an aggressive order?

Passive orders are all about boosting market liquidity. 🌊

Unlike passive orders, aggressive ones let traders say, "Yo, this is the price, let's make it happen pronto!" 😤

Aggressive orders scoop up that market liquidity. 🚀

If an order price is vibing close to market prices, it's an aggressive order vibe. 🏁

Unlike the chill passive order, the aggressive one is gonna hit because it's locked in at the bid/ask or even better, as long as the market's got the goods. 💥